7 Fun and Interesting Retirement Facts
As you invest with a Self Directed IRA, you might be wondering about the rest of America. Are your fellow citizens also engaging in retirement planning, and if so, what are they thinking? Will their retirement plans cover the costs? Do they want pets in the golden years? And why exactly is Florida so popular? These facts may not affect your Self Directed IRA strategy, but they’re definitely good for distracting your cousin Len at the next family barbecue.
- Retirement can last a long time – The current life expectancy for an average American is close to 79 years old. The average retirement age is 67. That means you have 12 years to plan for, both financially and for leisure. Of course, many Americans live well into their eighties and nineties which gives you even more time. It pays to look at the numbers now to make sure that you have a game plan for when those golden years arrive.
- Retirement planning is not very fun – According to a Northwestern Mutual study, 18% of participants find financial planning to be an exciting experience. Of course, that means 82% do not enjoy it all. Responses from those of us who are not enamored with financial planning include “prefer to not deal with it until I absolutely have no choice”, “not my favorite thing in the world but know it needs to get done like a medical checkup”, and “worried and nervous about confronting the financial details of my life.” So, revel in the fact that misery loves company, and you are not alone in the drudgery of retirement planning.
- Pets (big time) - According to AAG (American Advisors Group), approximately 78% of Americans expect to have some furry companionship during their retirement years. That’s a huge number as the Census data states that only about half of U.S. households currently own pets. That means a significant number of Americans plan on getting a pet who currently don’t have one. Now we can’t speak as to why seniors have an affinity for pets, however it’s probably a good thing. The British organization SCAS enumerated some of the real benefits that come with pet ownership. They include better heart health, a marked decrease in feelings of loneliness, and less need of nursing home care.
- Florida? Yes! - Florida has traditionally enjoyed a reputation as being a prime state for retirement. There is no single reason for its popularity, but there are certainly a lot of contributing factors. It has great warm weather, high quality of life, and no state income tax. It also benefits from just having the reputation. As more people move there, the infrastructure adapts to provide for those residents. After a good number of years of incoming retirees, the state has become optimized for everything they may need. It also doesn’t hurt that even younger families view as a great vacation destination and retirement allows one to live that dream full time.
- Georgia? Well... Also yes! - According to a recent Bankrate study, Georgia is now the #1 state for those looking to retire. It combines great affordability with warm weather, decent travel infrastructure, and a wide variety of locales to live in. Residents can move to the mountains, bask by the beach, or enjoy the city life of Atlanta. Builders are beginning to take notice and there has been a noticeable uptick in 55+ communities.
- Death and taxes and... student debt? - We are all familiar with recent graduates complaining about student debt, but now older individuals can join in as well. The Consumer Financial Protection Bureau reports that the number of seniors (60+) with student debt has quadrupled in recent years. From 2005 to 2015, the number skyrocketed from 700,000 to 2.8 million. It may not be the best way to feel young, but it’s definitely a good talking point when dealing with that smarmy niece.
- New Digs – For those who like a change of scenery, Transamerica reports that 38% of retirees moved to a new home. Reasons for the move include reduced expenses and wanting to be closer to family or friends. For the homebodies amongst us, take comfort in the fact that there are a lot of you out there. 62% of retirees chose to stay in the house they were living in before retirement.
Wondering what fun facts await you in your own retirement? We can help you get there. Speak to a Madison Specialist and find out how to start a Self Directed IRA. You can schedule a call here.